Do you want to know the graduate student loan interest rates in Wells Fargo? Well, we have the information about it here so that you are able to check it below together with the other information related to student loans in Wells Fargo.
Student Loan Interest Rate at Wells Fargo
According to the official website of Wells Fargo, you will have the option of a variable or fixed interest rate. Your interest rate offer will be given after Wells Fargo reviews your application and credit requirements have been met.
Competitive private student loan rates are offered by Wells Fargo with fixed and variable interest rate options. Usually, variable private student loan interest rates start lower than fixed rates, a fixed rate option is able to offer protection if the rates of interest go up over time.
Here are the points of fixed interest rates.
- It remains the same over the life of the loan and ensures your monthly payments stay stable over time.
- It permits you to better predict how much total interest that you will pay on your private student loan.
- If after you lock in a fixed interest rate the Prime rate falls, the rate of your fixed interest will stay the same. Also, your monthly payments may be higher than they would have been with a variable interest rate loan.
Here are the points of variable interest rates.
- Usually, you will be provided with a lower initial rate on private student loans than fixed interest rates.
- It may rise or fall because the Prime rate adjusts over time and it can affect your monthly payment amount.
- Your payment may vary on a monthly basis and it will be able to lead to payments being higher than a fixed interest rate.
The rates of variable interest are based on an Index, plus a margin. The Index is the same as the Prime rate which is published in the Wall Street Journal. The annual percentage rate or (APR) for a variable rate loan may increase during the life of the loan. It can happen if the index increases. So, it may be able to end up with a higher monthly payment. However, it is important to note that the variable interest rate is capped and it will never exceed 18%.
How variable interest rates work in Wells Fargo? A variable interest rate of student loan in Wells Fargo is based on two factors including the Index (Prime rate) which is able to go up or down depending on the conditions of the market, and the margin which does not change. In case rates were to increase at a steady pace, you will not exceed the maximum interest rate cap.
Interest rate = Prime rate + Margin
Interest rate is the percentage that lenders charge customers for borrowing money and it can change when the Prime rate changes. Prime rate is a standard interest rate index that a lot of lenders use as the basis for determining the rate charged on a loan. Margin is a fixed percentage which is determined by the lender, based on your credit and other factors when you apply for a loan.
How rates can impact monthly payments? The table as cited from the Wells Fargo site below shows sample annual percentage rates and monthly payments, based on a $10,000 loan with a 15-year repayment term and immediate repayment.
|Customer||Annual Percentage Rate||Monthly Payment|
According to Investopedia, most graduate loans in Wells Fargo are subject to the similar $120,000 cap to undergraduate loans. However, graduate loans which are used for law and business degrees have a lifetime limit of $180,000. From the table below, you are able to see the variable rates, fixed rates, loan amounts and loan terms for graduate loans in Wells Fargo.
- Variable Rates: 3.21% – 9.44%
- Fixed Rates: 5.64% – 11.76%
- Loan Amounts: $1,000 up to total cost of attendance (subject to lifetime limit)
- Loan Terms: 15 years
Wells Fargo Does Not Offer Private Student Loans Anymore or Private Consolidation Loans
In January 2021, Wells Fargo made an announcement that they were exiting the student loan business and selling and transitioning current loans to a new servicer namely Firstmark Services which is a division of Nelnet. They stopped accepting new applications for private student loans or private consolidation loans as of January 28th, 2021 at 06:00 PM Central Time.
It means that the borrowers will not be able to make payments to Wells Fargo and also will not be able to make a new loan. If you want to know the status of your loans, you are able to contact the customer service of Wells Fargo at 800-658-3567.
Some FAQs of Student Loans in Wells Fargo
- If my student loan servicing has transferred, how do I contact Firstmark Services, a division of Nelnet?
If the servicing of your Wells Fargo student loans has been transferred, you will get a welcome letter from Firstmark Service with your new account number and contact details. After you get the letter, you can access Firstmark Services website or call 1-833-531-1307 for customer support.
- Why don’t our student loans appear on Wells Fargo online anymore?
After your student loan is transferred, your student loan will not appear on Wells Fargo anymore. If your student loan is your only account with Wells Fargo, you will not have access to Well Fargo online after this transfer is done. You will be mailed by Firstmark Services about the instructions to set up online access using your new account number.
- Will the terms of our student loan remain the same after this servicing transfer?
Yes, this student loan servicing transfer will not give effect to terms and conditions of your student loan. Your rights and responsibilities will remain the same.
- How do we access our payment history?
Before transfering, Wells Fargo Education Financial Services will continue to manage the payment history on your private student loan. After the student loan servicing is transferred to Firstmark Services, this information may be asked from the new loan servicer at Firstmark Services.